JUMP ON BOARD!
Become a member of the 40 Below Council!
STAFF
Patrick Sexton
Executive Director
Pat@RochesterAreaBuilders.com
Shelly Bahlmann
Publications & Special Events Director
Shelly@RochesterAreaBuilders.com
Awards, Program, Golf Outing, Sporting Clays, Home Show, Trades & Toys, Newsletter, Showcase Magazine, RAB Update,Website, Member Plus App & RAB Events App
Amber Luhmann
Planroom Director
Amber@RochesterAreaBuilders.com
Builders Exchange Trustees, Education, Showcase of Homes & Remodelers Tour
Stephanie Schmidt
Member & Community Engagement Director
Stephanie@RochesterAreaBuilders.com
Ambassadors/Membership, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Program, 40 Below
BOARD OF DIRECTORS
PRESIDENT
Adam Giannini, Knutson Construction
VICE PRESIDENT
Austin Ryan, Ryan Windows & Siding
SECRETARY
Kelsey Vaszily, Kraus-Anderson Construction
TREASURER
Aaron Thompson, The Design Connection
PAST PRESIDENT
J ason Scrimshaw, Kimley-Horn & Associates, Inc.
MISSION STATEMENT
DIRECTORS
Jeremy Moe, Boldt Company
Jeremy Keller, Keller Homes
Jarett Jones, Merchants Bank
Vanessa Hines, Widseth
Kaleb Stevens, Weis Builders
Chris Hus, RE/MAX Results
Melissa Barbour, TLS Companies, LLC
Joe West, Valor Mechanical
Julie Herrera-Lemler, Rochester Area Economic Development, Inc. (RAEDI) / SBDC
BUILDERS EXCHANGE COUNCIL CHAIR
Niki Birkholz, Palmer Soderberg, Inc.
COMMERCIAL BUILDERS COUNCIL CHAIR
Keith Kranz, LVC Companies
DEVELOPMENT COUNCIL CHAIR
Mark Welch, KMain Street Properties
REMODELERS COUNCIL CHAIR
Jen Foerraro, Hamernicks Flooring
40 BELOW CHAIR
Dylan Musgjerd, ISG
NATIONAL LIFE DIRECTORS
Steve Buss, Cornerstone Builders & Real Estate, Inc.
NATIONAL DIRECTORS
Dana Hlebichuk, Widseth
Levi Kaiser, Benike Construction (Rep)
Todd Severson, TLS Companies, LLC
STATE DIRECTORS
Mike Allen, Mike Allen Homes, LLC
Jay Burke, Heartwood Homes
Jean DeWitz, DeWitz Home Builders, Inc.
John McGuine, JM Consulting
John Eckerman, RSP Architects
Kenneth Bush, Bush Companies
The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota. We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.
FROM THE PRESIDENT
ADAM GIANNINI
President
Rochester Area Builders
Dear Rochester Area Builders Members,
I hope your summer has been treating you well. It’s hard to believe that in just a few days, we will be in the month of August. Back to school, cooler weather, and football season are all within reach. It has been very exciting to see all the engagement and participation in the events hosted last month! We had a fantastic Networking Night at Top Shop with live music from Becky Schlegel and the 48s and 40 Below hosted their yearly Honkers Game on the sports deck. As we look ahead, I hope to continue riding this wave of engagement and remind you of some important events in the coming months.
Our monthly Member Appreciation Night will be on Tuesday, July 30th from 4:00-6:00 PM at Purple Goat. Please join us for the opportunity to network with fellow members, share more about what you do and grab a bite to eat!
Builders Bags & Brews is only a few weeks away! This flagship event is a must attend AND you can register a team up until the day of. The event will be at LTS Brewing on Thursday, August 15th. Even if you are not interested in participating, a lot of folks will bring lawn chairs to spectate with a cold beer from LTS in hand. There will be a food truck
from Smoak on site as well.
Registration for the Sporting Clay Shoot was sold out within 24 hours! I am very excited to see everyone out there testing their trap shooting skills! If you weren’t able to get a team, sponsorships are still available. Please contact Shelly for more information. And of course, we’ll be hosting the popular raffle for a chance to win a Browning Citori 725 Sporting Shotgun, a $500 gift card from Scheels, a cooler from Apex Fence or a flat of ammo! All proceeds from the raffleg go directly to our scholarship fund, supporting the next generation of builders.
Don’t forget, the final deadline to enter the Fall Showcase of Homes and Remodelers Tour is August 20th. This is your opportunity to showcase your work and gain valuable exposure. Make sure to secure your spot! Contact Amber!
We are seeking volunteers to help make the inaugural Trades and Toys Car Show a success. This event promises to be a fantastic day filled with impressive cars and fun activities. If you are interested in volunteering, please contact Shelly The event is taking place on Saturday, August 24th at Graham Park.
Finally, I would like to welcome Stephanie Schmidt as our new Member & Community Engagement Director. Stephanie comes to us from Home Federal and has a background in commercial banking. She has been a terrific and engaged RAB member for years, serving on multiple committees. We are very excited to have Stephanie on the team, if you haven’t met her yet stop by the office and introduce yourself.
Thank you for being an essential part of the Rochester Area Builders community. Your participation and support make all of this possible!
Best,
Adam Giannini Knutson Construction 2024 RAB Board President
Rochester Area Builders
AUGUST 2024
“What is Your Future Fair” on October 8th at the RCTC annual Student Success Day
The “What is Your Future Fair” is a career, college, and program fair for RCTC students to learn about the programs and departments RCTC has on campus, to introduce students to four-year colleges or continuing programs that they might consider transferring to after RCTC, and to connect students with businesses and organizations that have careers available for them postgraduation. Our goal in hosting this event is to support RCTC students’ pathways to success!
The resource fair will run from 12:00 PM -1:30 PM on October 8th in the RCTC Regional Sports Center Field House. In previous years, we hosted approximately 350+ RCTC students at this fair.
If you would like to participate in this event, please fill out this form by September 1st, 2024: What’s Your Future Fair Sign-Up Form
After September 1st, our team will provide event details to those who have signed up!
MEMBER NIGHT
Join us for Member Appreciation Night as we celebrate you, our members and recognize all Honorary Members!
We invite you to bring a guest or coworker who has never attended an RAB event to introduce them to the Association and our members. hors d'oeuvres and drink tickets provided. Don't miss this great opportunity to catch up with others in the industry!
REGISTER
ROCHESTER AREA BUILDERS
GATES OPEN: 8:00 AM
AWARDS ANNOUNCED: 2:30 PM
AUGUST 24TH 10:00 AM 3:00 PM TO
GRAHAM PARK - 112 Arena Dr SE, Rochester
FREE SPECTATOR ADMISSION
REGISTRATION: $20 in advance or $25 at the gate
TOP 5 DOMESTIC • TOP 5 IMPORTS • TOP 5 MOTORCYCLES • BEST IN SHOW
FOOD TRUCKS • EMERGENCY VEHICLES • ACTIVITIES FOR KIDS
EVENT SPONSORS:
Platinum Sponsor:
1ST ANNUAL More event information at RochesterAreaBuilders.com
Silver Sponsors: Media Sponsor:
Bronze Sponsors:
Benike Construction • Jech Custom Homes & Construction • 3W Liners Meyer Borgman Johnson, Inc. • Knutson Construction Services
RAIN DATE: AUGUST 31ST
volunteers needed! CAR SHOW
As we GEAR up for the Trades and Toys 1st annual Car show Saturday, August 24th, we are searching for volunteers to be an integral part of our event. Your support as a volunteer can make a significant difference in creating an unforgettable experience for car enthusiasts and attendees.
SINGLE-FAMILY STARTS WEAKEN IN JUNE
Elevated interest rates for home mortgages and construction and development loans kept single-family production and demand in check during June.
Overall housing starts increased 3.0% in June to a seasonally adjusted annual rate of 1.35 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The June reading of 1.35 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 2.2% from an upwardly reviewed May figure to a 980,000 seasonally adjusted annual rate. However, on a year-to-date basis, single-family starts are up 16.1% thus far in 2024.
Lower single-family starts are in line with our latest industry surveys, which show that builders are concerned about the current high interest rate environment. With better inflation data, the Federal Reserve is expected to begin rate reductions later this year. An improving interest rate environment will help buyers as well as builders and developers who are contending with tight lending conditions and high interest rates. And with total (new and existing) home inventory at a relatively low 4.4 months’ supply, builders are prepared to increase production in the months ahead. Indeed, NAHB survey data of forward-looking builder sales expectations saw a gain in July.
The volatile multifamily sector, which includes apartment buildings and condos, increased 19.6% in June to an annualized 373,000 pace. The general trend for apartment construction is lower however. The pace of multifamily 5-plus unit starts are down 23.4% from a year ago. And on a year-to-date basis, multifamily 5-plus unit starts are down 36.3%.
On a regional and year-to-date basis, combined single-family and multifamily starts 9.9% lower in the Northeast, 3.4% lower in the Midwest, 3.5% lower in the South and 0.7% higher in the West.
Overall permits increased 3.4% to a 1.45 million unit annualized rate in June. Single-family permits decreased 2.3% to a 934,000 unit rate. Multifamily permits increased 15.6% to an annualized 512,000 pace.
Looking at regional data on a year-to-date basis, permits are 0.8% lower in the Northeast, 3.0% higher in the Midwest, 0.7% lower in the South and 3.8% lower in the West.
The total number of single-family homes and apartments under construction was 1.56 million in June. This is the lowest total since January 2022.
Single-family homes under construction fell back 1.3%, to a count of 668,000—down 2.2% from a year ago. The number of multifamily units under construction continues to fall, declining 1.6% to an 895,000 count—down 11.4% from a year ago. The number of multifamily units under construction is now the lowest since August 2022. This count will continue to fall. On a 3-month moving average basis, there are currently 1.7 apartments completing construction for every 1 that is beginning construction.
Multifamily completions reached a 673,000 seasonally adjusted annual rate in June. This is the fastest pace for apartment completions since May of 1986. This additional supply will provide some added relief for shelter inflation and provide confidence for the Fed to begin cutting interest rates this year.
ROCHESTER AREA BUILDERS SPORTING CLAY SHOOT
SEPTEMBER 12, 2024
REGISTRATION SOLD OUT
SPONSORSHIPS AVAILABLE
1:30–2:00 P.M. Shooters released to opening stations
2:00 P.M. Shooting starts
5:00 P.M. Shooting complete. Keg is tapped
5:15 P.M. Dinner
6:00 P.M. Ra e drawing!
GOLFER GIFT
$1,000
LUNCH
$500
DINNER
$500
Company name displayed on each golfer gift, social media, website, app & event recognition.
Company name displayed on all lunch boxes, event signage social media, website, & event recognition
Company name displayed on all tables, social media, website, app & event recognition.
PREMO HOLE
$250
HOLE
$125
GOLF/ BEVERAGE CART
$100
Company name displayed on sign near tee box, social media & website. May have a company representative at the hole.
Company name displayed on a sign near the tee box, social media & website
Company name displayed on all golf carts OR beverage carts, social media & website.
CONVENTIONAL LOANS
• Low Down Payment Options
• Jumbo Loans
• Local Servicing CONSTRUCTION LOANS
• Interest-only Payments during Construction
• Easy Conversion to Long-term Financing
LOAN PROGRAMS
• Low or No Down Payment Options
• First-time Home Buyer Programs
LOANS
• Recreational and Agricultural Land
• Cabin / Second Homes
• Investment Properties
• Home Equity Loans / LOCs
SHARE OF HOMES BUILT ON SLABS SURGES TO 72.4%
NAHB analysis of the Survey of Construction (SOC) shows that 72.4% of new single-family homes started in 2023 were built on slab foundations, 16.6% were built with full or partial basements, and 9.9% with crawl spaces. The share of new homes built on slabs has risen steadily from 45.8% in 2000 to 72.4% in 2023. The largest increase occurred from 2022 to 2023, with a jump of 3.9 percentage points (pp), compared to an average increase of 1.93 pp over the previous five years. Conversely, the share of homes with full or partial basements decreased by 3.0 pp from 19.6% in 2022 to 16.6% 2023.
In colder areas where building codes require foundations to be built below the frost line, most homes are constructed with full or partial basements. In the northern divisions, full or partial basement foundations provide additional finished floor areas at a marginal increase of construction cost. The divisions with a majority share of full or partial basements in new homes are West North Central (63.9%), followed by New England (62.1%), Middle Atlantic (48.1%), and East North Central (48.0%). Interestingly, in East North Central, the share of homes with basements is now almost equal to those with slabs. The average area of finished basement was 1,128 square feet (sq. ft.) in East North Central, 932 sq. ft. in the West North Central division, 890 sq. ft. in New England, and 1,117 sq. ft. in the Middle Atlantic. Nationwide, the average finished floor space of basements was 1,113 sq. ft. in 2023.
In warmer climate where slab foundations are preferred for their cost-effectiveness, new homes with slab foundations are most commonly found in the West South Central (96.9%), Pacific (86.5%), South Atlantic (83.3%), and Mountain (52.9%) divisions. However, adoption rates for slab foundations are also increasing in northern divisions. The figure below shows the share of slab foundations for these four divisions have risen from less than 15% in 2000 to over 30% in 2023. Notably, there is a knee in the curve in 2020, indicating that supply chain disruptions and building material prices brought about by the pandemic contributed to the switch to slab foundations. Another factor is the increased use of frost-protected shallow foundations (FPSF), introduced in 2000, that also enhances affordability.
Al Roder, City of Byron
Tom Monson, City of Kasson EDA
Mitch Massman, City of Pine Island
Chris Giesen, City of Chatfield
David Todd, City of Plainview
Bill Schimmel, City of Stewartville
Mike Paradise, Bigelow Homes
Jamie Judisch, Noble Development
Hal Henderson, HGA
Aaron Thompson, The Design Connection
Coalition for Rochester Area Housing Keynote Speaker SCAN HERE TO REGISTER NOW!
REGISTRATION NOW OPEN
BIG WEEKENDS
SEPTEMBER 21-22 & 28-29 11:00AM TO 5:00PM
FREE ADMISSION
Showcase of Remodelers
OSEPTEMBER 21-22
11:00AM TO 5:00PM
PRESENTED BY EVENT SPONSOR
An event magazine is produced by Rochester Area Builders and distributed digitally and in print. It outlines details, descriptions, and photos of each show entry. Showcase of
We are gearing up for the Fall Showcase of Homes and Remodeler’s Tour. The show will feature new homes, townhomes, and subdivisions as well as remodeling projects. All entries will be showcased by local Rochester Area Builders’ members.
Reach Your Target Audience
Sept 21-22 & 27-28
The Showcase of Homes is attended by those interested in purchasing, building, or improving their home. Showcase your products and services while they are inspired to take action. We invite you to advertise
Remodelers Tour Sept 21-22
Confirm Your Ad
August 20, 2024
RAB has contracted with Tulip Tree Marketing for ad sales and design services. For more information, scan the QR code or contact Crystal Landherr, Marketing Specialist, at (507) 218-8401 or Crystal@TulipTreeMarketing.com.
DBS Group Expands Design-Build Team
Design-build construction company DBS Group has added five new team members this summer to support its growing operations in Rochester, Minnesota, and La Crosse, Wisconsin. In the past four years, the firm's team has nearly doubled as revenue has grown by more than 125%.
"DBS Group's growth in recent years reflects the rising demand for our customerfirst design-build services," said DBS Group President and CEO Chris Walters. "Our dedicated and talented team has been the driving force behind this success, and we're grateful and excited to introduce our five newest team members. Their addition strengthens the company and enhances our ability to deliver outstanding services to our clients."
Marissa Baker has joined DBS Group's in-house design team. A Revit modeler/design draftsperson, she's a recent graduate of Western Technical College with an associate degree in architectural technology.
Brianna Kruser is our newest project engineer. She has a bachelor's degree in interior design from the University of Wisconsin – Stout and has spent the past five years working for two regional residential supply/design/construction firms.
HL Maher has joined our team as a project estimator. A veteran of the commercial construction industry, he has experience working in multiple capacities, including field operations, project management, and estimating.
Gavin Olson has joined DBS Group as a carpenter. He's spent the past few years working as a carpenter for a builder in the Madison area
Ben Solberg is an assistant project superintendent at DBS Group. He recently graduated from Minnesota State University, Mankato, with a bachelor 's degree in construction management. While working through college, he held multiple internship positions, most recently with a large regional/national construction firm.
DBS Group is a design-build construction manager and general contractor based in Onalaska, Wisconsin, and Rochester, Minnesota. Experts in design -build project delivery in various commercial construction markets, DBS Group manages building projects from conception to completion. The company 's in-house designers, and external design partners, collaborate with DBS Group's estimating and construction experts to deliver projects on time and on budget.
Marissa Baker
Brianna Kruser
HL Maher
Gavin Olson
Ben Solberg
RAB/BER MEMBER
$ 0.30 per sf for B/W line drawings. $ 0.60 per sf for Color line drawings. $ 1.20 per sf for Half color drawings. $ 2.70 per sf for Full color drawings.
ROCHESTER BUILDING PERMITS
TCPA BUILDING PERMITS
PINE ISLAND BUILDING PERMITS
HIGH MORTGAGE RATES CONTINUE TO HOLD BACK BUILDER CONFIDENCE
Mortgage rates that averaged 6.92% in June per Freddie Mac, along with elevated rates for construction and development loans, continue to put a damper on builder sentiment.
Builder confidence in the market for newly built single-family homes was 42 in July, down one point from June, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the lowest reading since December 2023.
While buyers appear to be waiting for lower interest rates, the six-month sales expectation for builders moved higher, indicating that builders expect mortgage rates to edge lower later this year as inflation data are showing signs of easing.
Despite inflation remaining above the Federal Reserve’s target of 2%, it appears to be back on a cooling trend after a rise in the first quarter. NAHB is forecasting Fed rate reductions to begin at the end of this year, and this action will lower interest rates for home buyers, builders and developers. And while home inventory is increasing, total market inventory remains lean at a 4.4 months’ supply, indicating a long-run need for more home construction.
The July HMI survey also revealed that 31% of builders cut home prices to bolster sales in July, above the June rate of 29%. However, the average price reduction in July held steady at 6% for the 13th straight month. Meanwhile, the use of sales incentives held steady at 61% in July, the same reading as June.
Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
The HMI index charting current sales conditions in July fell one point to 47 and the gauge charting traffic of prospective buyers also declined by a single-point to 27. The component measuring sales expectations in the next six months increased one point to 48.
Looking at the three-month moving averages for regional HMI scores, the Northeast fell six points to 56, the Midwest dropped four points to 43, the South decreased two points to 44 and the West posted a four-point decline to 37. HMI tables can be found at nahb.org/hmi.
FOUNDATIONS NEWSLETTER ADVERTISING
Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals. Ad sizes are listed under Display Ad Dimensions, and prices are located above. Ads may be changed from month to month.
Our prices are for full color ads. We will gladly work with you to design your ad. Please send digital files for all ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files. Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.
RETURN TO: ROCHESTER AREA BUILDERS
Shelly Bahlmann
Shelly@RochesterAreaBuilders.com
108 Elton Hills Ln NW Rochester, MN 55901
507-282-7698
Newsletter Display Ad Dimensions 1/2
Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.
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Reach Qualified Customers
Advertise on the RAB Website!
More than 3,000 people visit the RAB website each month, many of them looking for a contractor. Advertise on our site and reach them when they’re primed to buy! Banner ads are available in a variety of locations on the RAB site, from job posts to the contractor directory. Higher tiers come with priority placement in directory search results too.
Contact us today to learn how you can start advertising!
Contact Rochester Area Builders Shelly@RochesterAreaBuilders.com or 507-282-7698
Company Name, Address and Phone Number
Links to Website, Address, and Phone
5 Categories
Medium Placement in Search Results
Link to Profile Page
12 Categories
Company Description (200 Characters)
Keywords (240 Characters)
Hours of Operation
Driving Directions
Higher Placement in Search Results
Company Description (1600 Characters)
Keywords (Unlimited Characters)
200 Characters on Search Results
Bulleted List with Hyperlinks
Logo on Profile Page Can Be Added
Search Results Summary (200 Characters)
Profile Page Header Can Be Added
Gold Map Pin
Logo On Search Results Can Be Added
Social Networks Can Be Added
Photo Gallery Can Be Added
YouTube Video Can Be Added
Contact: Shelly@rochesterareabuilders.com for more information.
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